Does Harris Want to Tax Your Unrealized Bitcoin Earnings? Here’s what’s going on

Rumors are swirling online that Kamala Harris wants to introduce an unrealized capital gains tax if elected president, a move that could theoretically destroy the profits of crypto investors.

But some key details are missing from the public conversation, namely that the tax would not apply to the vast majority of investors.

Kamala Harris’ tax plans

As Semafor reported Monday, the Committee for a Responsible Federal Budget (CRFB) said Kamala Harris’ campaign has specifically pledged to “support all tax increases on high income and corporations that are in Biden’s budget.”

“And obviously none of them are specifically mentioned in this (Harris) plan,” said CFRB Senior Vice President Marc Goldwein.

According to President Joe Biden’s 2025 budget proposal, the plan recommends a “minimum tax of 25 percent on total income, generally including unrealized capital gains.”

Plans for such a tax were echoed in the Democratic Party’s 2024 platform, which promised a 25 percent income tax rate on billionaires and “end the preferential treatment of capital gains for millionaires, so they pay the same rate on investment income as on wages.” .” The proposal was constructed before Biden dropped out of the presidential race, so it doesn’t necessarily reflect Harris’ exact platform.

Notably, the unrealized gains tax would only apply to the wealthiest Americans with total income or wealth above $100 million. That didn’t stop online crypto influencers from freaking out, warning that Harris wants a 25% tax on unrealized capital gains and a 45% tax on long-term capital gains.

“They didn’t comment on introducing new taxes like unrealized gains tax (which would be stupid),” Cinneamhain Ventures partner Adam Cochran wrote on Twitter. “So no, she didn’t pass an ‘unrealized earnings tax,’ and even if she did, you don’t earn enough for it to affect you.”

A dangerous precedent

Even with the nuance, many commentators believe that an unrealized earnings tax of any kind can cause irreparable damage to the country’s economy.

“When the majority of the stock market decides to sell all their stocks because the US has crazy tax laws on unrealized gains, little people like you and me are absolutely screwed,” tweeted Farzad Mesbahi.

Casa co-founder Jameson Lopp also criticized the defense that such taxes will only apply to the ultra-rich. “How do you think the income tax started?” he tweeted, referring to the introduction of the 1% income tax in 1913 that first only affected the top three percent of workers.

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